Mastering 5 BOT Projects to Excel

10 May, 2025

On December 20th, the Vietnam Fatherland Front Committee of Ho Chi Minh City organized a social consultation conference for five Build-Operate-Transfer (BOT) projects for the construction, upgrading, expansion, and modernization of existing road infrastructure under National Assembly Resolution 98/2023.

Anticipating the End-of-Year 2025 Milestone

The five BOT projects include the upgrading and expansion of National Highway 13 from Binh Trieu Bridge to the border of Binh Duong Province; upgrading and expanding National Highway 1 from Kinh Duong Vuong Street to the border of Long An Province; improving and upgrading National Highway 22 from An Suong Intersection to Ring Road 3; upgrading the North-South axis road from Nguyen Van Linh Street to Ben Luc – Long Thanh Expressway; and constructing the Binh Tien bridge and road from Pham Van Chi Street to Nguyen Van Linh Street.

At the conference, emphasizing the importance of Ho Chi Minh City as a crucial gateway connecting the region to the world, Ms. Nguyen Thi Kim Thuy, Vice Chairwoman of the Vietnam Fatherland Front Committee of Ho Chi Minh City, stated that following National Assembly Resolution 98, the People’s Council of Ho Chi Minh City approved the list of BOT projects to be implemented on existing roads. The approval was based on the criteria of well-connected overhead road planning, in line with the urban development orientation and linking important transport hubs. According to Ms. Thuy, the conference aimed to gather diverse opinions from local authorities, lawyers, experts, and citizens to ensure the best preparation for the projects.

With the upcoming project, it is believed that the section of National Highway 13 passing through Ho Chi Minh City will no longer experience daily congestion. Photo: HOANG TRIEU

Mr. Tran Quang Lam, Director of the Department of Transportation, provided information that Ho Chi Minh City is the only locality requesting a pilot mechanism for implementing BOT projects on existing roads. The department has basically completed the pre-feasibility study reports for the five projects and submitted them to the City Appraisal Council. If successful, the People’s Council is expected to approve the investment policies in the first quarter of 2025, with construction commencing at the end of 2025 or early 2026.

Mr. Lam mentioned that these five strategic gateway routes are mostly proposed to be constructed as overhead roads to optimize their efficiency. Therefore, the construction methods, applicable technologies to minimize impacts, and toll collection methods will be carefully studied to reduce any negative effects on the public. “For now, in the first phase, Ho Chi Minh City will pilot the BOT mechanism for these five projects,” said the Director of the Ho Chi Minh City Department of Transportation, “and then we will review other routes to propose additional BOT projects.”

Prioritizing the Interests of the People

According to the consulting unit’s representative, the total investment for the five BOT projects is estimated at VND 61,000 billion, including VND 37,000 billion in state budget capital and VND 23,800 billion in mobilized capital, with a payback period of about 20-30 years.

Three projects are proposed to be constructed as overhead roads, while two will be at-grade roads. The toll collection will aim to balance the interests of the people and investors, ensuring that citizens do not bear excessive costs. Additionally, the representative stated that they would consider implementing stage-based toll collection instead of per-trip charges to ensure fairness for the public.

With the upcoming project, the section of National Highway 13 passing through Ho Chi Minh City is expected to be free from daily congestion. Photo: HOANG TRIEU

Dr. Tran Du Lich, Chairman of the Advisory Council for the Implementation of Resolution 98, suggested that the projects should minimize land clearance as much as possible, only clearing the necessary area to reduce costs and time. For overhead roads, users should pay the toll, while existing at-grade roads should remain free. Additionally, he recommended thoroughly studying which projects should be implemented as BOT and which could be carried out using state budget funds. He emphasized the importance of expediting these five projects before the mid-term review of Resolution 98.

Attorney Nguyen Van Hau, Vice Chairman of the Ho Chi Minh City Bar Association, commented that based on the overall assessment of the five projects and feedback from the public, the overhead roads would help alleviate congestion in the area and provide smoother access and exits. However, he pointed out that congestion could still occur after exiting the overhead roads. Additionally, overhead roads incur higher construction and maintenance costs. Therefore, he stressed the need to thoroughly evaluate these concerns.

Regarding compensation and site clearance, Attorney Hau mentioned that Ho Chi Minh City is in a hurry to update the land price framework to align with market prices and address land speculation issues. However, the pre-feasibility study report for the project to upgrade and expand National Highway 1 from Kinh Duong Vuong Street to the border of Long An Province recommends not applying the new land prices as stipulated in Decision 79/2024 of the People’s Committee of Ho Chi Minh City. Not providing any clear and reasonable legal basis for not applying the new land prices will significantly affect the legitimate rights and interests of the people in terms of compensation for site clearance.

Concerning investment attraction mechanisms, Attorney Nguyen Van Hau suggested promptly studying capital mobilization methods to ensure the projects’ smooth implementation from the beginning.

Meeting the Needs of Housing and Stable Livelihood

Most of the localities where the projects will pass through, such as District 7, Binh Chanh, and Hoc Mon districts, acknowledged that the projects would help alleviate traffic congestion in the area and promote socio-economic development. However, they requested an early implementation of the projects, clear identification of project boundaries, and widespread communication to reassure the people.

As a resident of Binh Chanh District, Mr. To Hong Giang requested the city to apply reasonable compensation, support, and resettlement policies. He also suggested that the construction process minimize impacts on the daily lives and transportation of the people in the project-affected areas.

Ms. Tran Thi Huong, a resident of District 8, expressed her hope that the People’s Committee of Ho Chi Minh City would soon promote the Binh Tien bridge and road project, as it has been “hanging” for a long time. The people in the project-affected area are not allowed to build or repair their houses, affecting their quality of life. She emphasized the need to pay attention to compensation and resettlement policies to ensure stable housing and livelihood for the people.

THU HONG